GLOBAL FINANCIAL DEVELOPMENT REPORT 2014
tinate) rather than informational differences explain much of the variation in financial capability. On the United States, Mandell and Klein (2011) analyze data from the Jump$tart national survey of high school students and find that motivation is a key determinant of financial literacy levels. 20. These include Atkinson (2008); Fernandes, Lynch, and Netemeyer (forthcoming); Gale and Levine (2010); Hastings, Madrian, and Skimmyhorn (2012); Hathaway and Khatiwada (2008); Lusardi and others (2010); Martin (2007); and Xu and Zia (2012). The review suggests that financial knowledge is linked to higher levels of retirement planning and savings (Alessie, Van Rooij, and Lusardi 2011; Behrman and others 2010; Bucher-Koenen and Lusardi 2011; Lusardi and Mitchell 2007, 2011b), the quality of investment decisions (Abreu and Mendes 2010; Van Rooij, Lusardi, and Alessie 2011), credit management and satisfaction (Akin and others 2012), and mortgage performance (Ding, Quercia, and Ratcliffe 2008; Gerardi, Goette, and Meier 2010; Quercia and Spader 2008). 21. In particular, the design, quality, and intensiveness of interventions vary, making comparisons difficult; until recently, most studies focused on developed economies; few studies evaluate long-term or sustainable changes; and few provide a cost-benefit analysis of the intervention compared with other possible policies. 22. Based on a meta-analysis of over 100 studies, Miller and others (2013) find that, while some of these papers cannot reject the null hypothesis that financial education has no effect on savings, these papers, taken together, do supply evidence of an impact on savings. The study also exposes positive evidence of an impact on recordkeeping, but no evidence of
FINANCIAL INCLUSION FOR INDIVIDUALS
23.
24. 25.
26.
27.
28.
29.
an impact of financial education on defaults. Caution is required in interpreting this result because the studies on which the metaanalysis is based are diverse in many characteristics, including the countries in which the interventions occurred and the intensity and type of the interventions. See the Global Financial Inclusion (Global Findex) Database, World Bank, Washington, DC, http://www.worldbank.org/globalfindex. For a comprehensive review of this topic, see World Bank (2012a). See Cull, Demirgüç-Kunt, and Lyman (2012) and “Ministers Renew the Mandate of the Financial Action Task Force until 2020,” Financial Action Task Force, Paris, April 20, 2012, http://www.fatf-gafi.org/topics/fatf general/documents/ministersrenewtheman dateofthefinancialactiontaskforceuntil2020 .html. Based on interviews at the Consumer Protection Department during the March 2012 Financial Sector Assessment Program mission. Other studies find similar results in considering aggregate bank credit as opposed to lending to households (see Bae and Goyal 2009; Qian and Strahan 2007). Global Financial Inclusion (Global Findex) Database, World Bank, Washington, DC, http://www.worldbank.org/globalfindex. Under the declaration, each country makes measurable commitments in four areas: (1) creating an enabling environment to harness new technology that increases access to and lowers the costs of financial services; (2) implementing a proportional framework that advances synergies in financial inclusion, integrity, and stability; (3) integrating consumer protection and empowerment as a key pillar of financial inclusion; and (4) utilizing data for informed policy making and tracking results.
103